Tesoro Gold (TSO) 2025 Precious Metals Summit - Zurich summary

Project overview and resource growth

• El Zorro Gold Project in northern Chile has grown to 1.8 million ounces constrained, 2 million ounces unconstrained after a 20,000m drill campaign.

• Updated mineral resource estimate announced in May added 500,000 ounces; 60% of resources now indicated.

• Deposit remains open in all directions, with high-grade zones at depth and strong potential for further growth.

• Average grade is 1.07 g/t gold unconstrained, with 5,000 ounces per vertical metre, supporting attractive open-pit mining.

• Near-term exploration targets within 5 km of Tenera, including Pena Blanca, show strong potential for additional discoveries.

Technical and operational highlights

• Metallurgy shows over 94% gold recovery at a coarse grind size, with 40% gravity recovery and low cyanide use.

• Processing uses wastewater from a nearby desalination plant, with proven compatibility and no interference with gold recovery.

• Project benefits from proximity to coast, Pan-American Highway, power, and water infrastructure, with MOUs in place.

• Region 3 is a mining-rich jurisdiction, supporting project development and permitting.

Financials and development timeline

• Scoping study (June) based on $2,750/oz gold price, 3Mtpa throughput, 14-year mine life, and $1,200/oz AISC.

• Post-tax NPV (7.5% discount) is $663M, with $250M upfront capital including $40M pre-strip.

• At current gold prices, NPV rises to $1.3B and IRR to 85%; robust even at $2,300/oz gold with $400M NPV.

• Fully funded through feasibility (end 2026) and aggressive exploration, with Gold Fields holding a 13% stake.